Dow Jones sheds 300 points overnight but FTSE opens up

The Dow Jones shed almost 300 points in yesterday's session with sentiment knocked following Greek plans to hold a referendum on the European bailout plan agreed last week.

With the US market on edge there was a heavy sell off in banks with Citigroup and Morgan Stanley the heaviest fallers, as investors moved back into safe haven areas such as US treasuries. Morgan Stanley declined 8% to $16.23, while Citigroup fell 7.7% to $29.17. The Dow Jones index lost 2.48% or 297 points to end trading at 11,657, while the S&P 500 fell 2.79% or 35 points to 1,218. The financial sector of the S&P 500 fell 4.7% as yields on Italian bonds soared to all time highs since the creation of the Euro. The Vix volatility index also rose 18.6% to close above 35.  Overnight i...